Trying to make sense of the latest inflation data is not a simple task.
StatsCan says inflation was up in April, defying the attempts to wrestle it to the ground with higher interest rates designed to cut spending, hiring and investing which is supposed to slow the economy and lower inflation.
But then we get this bump after successive reports showing inflation was receding. So, what are we are supposed to make of this?
That is the 4.8 per cent question…. even the economists are confused. We have
Some in the banking sector saying this is a sign that the central bank may resort to another round of interest rates hikes.
But, at the same time, we have other banks saying consumers have altered their course in recent days by cutting back on spending. As they track activity on credit cards and bank accounts they see a noticeable shift – something that should preclude any further interest rate hikes.
Confusing matters further, StatsCan says the big contributor to inflation last month was gasoline – even though fuel prices have been steady for weeks and oil prices are falling.